French healthcare company Sanofi S.A. (Euronext Paris: SAN) (Nasdaq: SNY) and Provention Bio Inc announced on Monday an agreement for Sanofi to acquire US-based Provention Bio (Nasdaq:PRVB).

Sanofi will pay USD25.00 per share in cash, representing a total equity value of approximately USD2.9bn.

Provention Bio is a commercial-stage biopharmaceutical company with a focus on advancing the development and commercialisation of investigational therapies that may intercept and prevent debilitating and life-threatening immune-mediated diseases.

Through this transaction Sanofi will acquire TZIELD (teplizumab-mzwv), which was approved in the United States last year as the first and only therapy to delay the onset of Stage 3 type 1 diabetes in adults and paediatric patients aged 8 years and older with Stage 2 type 1 diabetes.

Subject to the satisfaction or waiver of customary closing conditions, Sanofi expects to complete the acquisition in the second quarter of 2023.